You Bought a Call Option with a $40 Strike Price

question 16

Multiple Choice

You bought a call option with a $40 strike price for $2.25 when the underlying stock was selling for $39.00. Just prior to expiration, the stock was selling for $44.00. What was your gain
Or loss per option share on this transaction?

• A)$1.75 gain
• B)$2.75 gain
• C)$2.75 loss
• D)$2.25 loss

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Definitions:

Iroquois

A historically powerful northeast Native American confederacy, known also as the Haudenosaunee, consisting of six nations: Mohawk, Oneida, Onondaga, Cayuga, Seneca, and Tuscarora.

Navajos

A Native American people of the Southwestern United States, known for their rich culture, including weaving and jewelry making.

Nation-State

A sovereign state whose citizens or subjects are relatively homogenous in factors such as language or common descent.

Regional Differences

Variabilities in customs, dialects, climates, or economic conditions among various areas within a country or between countries.